Google escapes forced break-up but must end exclusive search deals
Google has escaped the forced break-up of its business empire after a United States federal judge ruled that the tech giant will not have to sell its Chrome web browser or Android operating system.
The company, must however, end exclusive contracts and share valuable search data with competitors in a landmark antitrust case.
The ruling, handed down by District Judge Amit Mehta, followed a years-long legal battle over Google’s dominance in online search.
The US Department of Justice had pushed for drastic remedies, including a sell-off of Chrome, but Judge Mehta said such a move would be “a poor fit for this case”.
Instead, Google will now be barred from entering into exclusive agreements that made it the default search engine on products such as Apple’s iPhone, Mozilla’s Firefox and its own Android and Chrome platforms.
It must also share parts of its search index and user interaction data with rival firms to level the playing field.
The case revealed the extent of Google’s influence over the industry. In 2021 alone, the company paid over USD26 billion to Apple, Mozilla and other partners to secure its position as the default search engine.
Shares in Alphabet, Google’s parent company, surged more than 8 per cent following the ruling, reflecting investor relief that the court stopped short of breaking up the company.
Industry analysts described the outcome as a “win-win” for major corporate players, with smartphone manufacturers such as Apple, Samsung and Motorola also set to benefit from greater freedom in choosing pre-installed services.
Google welcomed the decision, saying it reflects the changing landscape of online search driven by artificial intelligence.
“Today’s decision recognises how much the industry has changed through the advent of AI, which is giving people so many more ways to find information,” the company said in a statement.
The Justice Department, however, signalled it may push for tougher measures.
“We are now weighing our options and thinking through whether the ordered relief goes far enough in serving that goal,” said Assistant Attorney General Abigail Slater.
Rivals such as DuckDuckGo were more critical, arguing the ruling did not go far enough to rein in Google’s market power. “Consumers will continue to suffer,” said CEO Gabriel Weinberg.
Google’s legal battles are far from over. Later this month, the company will face trial in a separate case alleging it holds illegal monopolies in online advertising technology, a market expected to generate billions in revenue this year.
